Ann wants to buy a property which costs $3,500,000. She gets a mortgage with 75% LTV. What is Ann's Debt to Equity ratio for this purchase? OA. 5:1 OB. 3:1 OC. 3:4 OD. 4:1

Income Tax Fundamentals 2020
38th Edition
ISBN:9780357391129
Author:WHITTENBURG
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Chapter10: Partnership Taxation
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QUESTION 4
Ann wants to buy a property which costs $3,500,000. She gets a mortgage
with 75% LTV. What is Ann's Debt to Equity ratio for this purchase?
A. 5:1
OB. 3:1
OC. 3:4
OD. 4:1
Transcribed Image Text:QUESTION 4 Ann wants to buy a property which costs $3,500,000. She gets a mortgage with 75% LTV. What is Ann's Debt to Equity ratio for this purchase? A. 5:1 OB. 3:1 OC. 3:4 OD. 4:1
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